Assets of PC Banks Increase to $3.85 Billion

The National People’s Cooperative Bank of Jamaica (NPCB) is reporting that the value of its assets increased to $4.39 billion during 2013, a 14 per cent increase on the $3.85 billion recorded in 2012.

Additionally, members’ net savings and deposits grew from $2.24 billion to $2.58 billion during the period, representing a 15 per cent increase.

General Manager, Curtis Barnett, says the share capital of members, comprising mainly farmers, grew by $18.44 million over the period, moving from $48.93 million to $67.27 million, representing a 38 per cent increase.

He further says 13,620 new members were registered during 2013, which was 5,158 more than the previous year, representing a 61 per cent increase.

Mr. Barnett outlined the figures while delivering the NPCB’s Board of Directors and Management report during the institution’s seventh annual general meeting at the Gold View Hotel, Mandeville, Manchester, on May 21.

He said the bank’s total income for 2013 totaled $486.16 million, which was $17.29 million, or four per cent, more than the $468.87 million recorded the previous year. He attributed this mainly to increased interest income generated from loans during the period.

“The NPCB disbursed 6,588 loans, valued $1.56 billion. Loans were disbursed to the following sectors: agriculture – 1,730 (totaling) $714.7 million; manufacturing – 1,239 (amounting to) $251.8 million; and services – 3,618 (totaling) $596.9 million,” he informed.

The General Manager pointed out that loans to members increased from $2.34 billion in 2012 to $2.83 billion last year.

He said as at December 31, 2013, the NPCB had 2,559 accounts in its Performing Loans Portfolio, with an outstanding sum of $73.9 million. He noted that the delinquency ratio for loans in arrears, ranging between 30 and 180 days, was 2.16 per cent at the end of 2013. Additionally, loan loss provision last year was less than one per cent of the overall portfolio.

Total loan repayments amounted to $1 billion, with $698 million being repaid to the NCPB, and $398.7 million to the DBJ.

“The financial performance of the National People’s Cooperative Bank saw some overall improvements, when compared with previous years. However, there is a definite need for expense control, as we seek to increase our revenues through our present suite of products, and (by) introducing new ones to the benefit of all stakeholders,” Mr. Barnett stated.

Meanwhile, Agriculture and Fisheries Minister, Hon. Roger Clarke, commended the NCPB on the “tremendous work you are doing.”

“The PC Bank has contributed significantly over the years to the growth and development of the agricultural sector and rural development,” the Minister said.

“I have been watching your growth (especially in) membership and 61 per cent is something that you must be congratulated for. It tells me that you are moving in the right direction,” he added.

Founded 107 years ago, the National People’s Co-operative Bank of Jamaica is the country’s premier community bank for rural agricultural development.

Its provisions to members/clients include a range of savings instruments; loan facilities to the micro, small, and medium-size enterprises (MSMEs); legal services, inclusive of wills and land titling; and family indemnity plan insurance.

The institution’s head office is located in Mandeville, with branches in all parishes, except Kingston.

Its operations are regulated by the Agricultural Credit Board (ACB), which falls under the purview of the Ministry of Agriculture and Fisheries.